Embattled crypto lender Celsius Community is aggressively paying down its DeFi money owed as consumer withdrawals stay suspended.
Since July 1, Celsius has repaid Aave 146M USDC and greater than 53M DAI, whereas withdrawing virtually 6,000 wrapped Bitcoin (wBTC), practically 55,000 ETH and tens of millions of {dollars} value of different tokens posted as collateral, in line with on-chain data. Celsius has additionally repaid about 120M DAI to Compound and withdrawn 4,400 wBTC it had posted as collateral.
Final week, Celsius utterly settled its debt to MakerDAO, having paid down $190M in DAI since July 2.
The information comes roughly a month after Celsius seemed to be at vital threat of insolvency.
On June 13, Celsius instantly suspended customer withdrawals citing excessive market situations. In a report launched final week, Arkham Intelligence launched a report detailing Celsius’ on-chain exercise alleging Celsius was pressured to freeze withdrawals with a view to pay down its money owed.
$750M Deployed
“At the beginning of the market downturn, round June tenth, Celsius seems to have had $604 million of collateral in opposition to $303 million in debt on AAVE with a well being issue of 1.6. On Compound, Celsius seems to have had $421 million of collateral in opposition to a $218 million debt,” Arkham wrote. “After the early June crypto market crash put them susceptible to liquidation, Celsius seems to have deployed roughly $750 million value of liquid capital to those positions, probably taking part in a key function in forcing them to freeze withdrawals on June thirteenth.”
Aave liquidates collateral in any collateralized debt place with a well being issue that falls beneath one.
As of Monday afternoon, Celsius owes Compound one other 50 million DAI, in line with on-chain knowledge, with a well being issue of 2.88. It owes Aave 72 million USDC with a well being issue of 5.3.
DeFi Transparency
As that they had after Celsius paid off its MakerDAO debt, observers took the corporate’s makes an attempt to pay again Aave and Compound as proof that DeFi was much less weak to monetary shenanigans than conventional finance.
“Celsius paying off loans from DeFi protocols first,” tweeted distinguished DeFi investor SantiagoRoel. “Sensible contracts with programmed threat parameters can’t be fooled like centralized lenders.”
Mario Nawfal, the founding father of crypto consulting agency IBC Group, agreed.
“When Luna blew up, everybody watched it stay on-chain and all of us knew the numbers,” he tweeted. “When Celsius, Voyager & 3AC blew up, nobody knew something. DeFi works!”
